Telecoms firm Phones 4u has signed a five-year sponsorship deal with Manchester Arena.

The deal will see the venue re-branded the Phones4u Arena, Manchester.

As part of the multi-million pound agreement with the arena's management company SMG Europe, work will begin on a refurbishment of its interior and exterior.

The arena, which attracts 1.5 million visitors a year, will also offer Phones4u customers the opportunity secure priority seats for concerts and other events.

The 21,000 seater complex is the largest indoor concert arena in Europe and has seen performances by acts including Noel Gallagher's High Flying Birds, U2, The Rolling Stones, Madonna, Lady Gaga, Pavarotti and the record-breaking 2010/2011 residency by Bolton comedian Peter Kay.

It first opened in 1995 and was known as the Nynex Arena until 1998, when it was re-christened the Manchester Evening News Arena.

That sponsorship deal ended in 2011 and the the venue has since been known as the Manchester Arena, while a new sponsor was sought.

John Knight, regional vice president of SMG Europe, said: “The relationship we had with the MEN left a fantastic legacy and was so positive in terms of raising the profile of the venue and boosting the promoters we work with, that we took our time in finding the right new partner.

“It wasn't just a question of taking a cheque to put someone's name above the door.

“There have been other offers on the table from local and national firms, but we believe Phones 4u has the right demographic for our business and will engage our customers, as well as allowing us to engage with their millions of customers.

“At the end of the day, it is about selling tickets, which also benefits the economy of the city.”

Mr Knight promised a 'substantial' investment in the Arena over coming weeks, which will include a new colour scheme in Phones 4u's corporate colours as well as upgrades to lounges and concourse areas.

The venue's broadband will also be upgraded so the entire audience will be able to go online and share their concert experience, a service that currently only has an capacity of 8,000 people.

The deal was brokered by the London office of specialist sponsorship and marketing agency PHAR partnerships.

Scott Hooton, chief commercial officer at Phones 4u, said: “This is an incredibly exciting time in Phones 4u’s history as our brand grows and evolves, and strives to engage with a broader audience.

“The partnership is also particularly relevant considering the rapid convergence of the entertainment and mobile space and over time, will allow us to deliver a whole host of exclusive benefits to our customers.”

SMG has a 25 year management lease to manage and operate the venue on behalf of owners Development Securities and Patron Capital.